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The new tariffs imposed by the Trump administration on goods from Mexico and Canada are expected to have a significant impact on the US automotive industry.
According to Carscoops, the impact could be even more severe for car manufacturers that rely heavily on imports from these countries, such as BMW.
Citing sources from The Wall Street Journal, BMW has informed its US dealers that the company will bear the cost difference resulting from the new tariffs on vehicles produced in Mexico.
The German automaker plans to implement this measure for at least a few weeks, meaning American customers can save thousands of dollars when purchasing a BMW during this period.
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The BMW M2 is one of the models assembled in Mexico and sold to American customers. Image source: BMW. |
While the coupe line does not account for a large proportion of BMW’s production volume, the 3-Series is a crucial model for the German manufacturer. Approximately 10% of BMW’s US sales come from vehicles produced in Mexico.
The plan, referred to by BMW as “price protection,” will be in effect until May 1st. According to Carscoops, an extension of this plan seems unlikely.
“If the tariff situation remains unchanged, BMW may need to conduct an evaluation after this date,” said a BMW spokesperson.
This statement implies that now is the best time for US customers to purchase a BMW manufactured in Mexico, as per Carscoops.
For instance, the 230i Coupe, with a starting price of $39,600, would be subject to a tariff of $9,900, equivalent to 25% under the Trump administration’s new policy on imports from Mexico.
With a starting price of $45,950 for the BMW 3-Series, American customers could face a significant tax burden of approximately $11,487.50 if BMW decides to halt the “price protection” plan after May 1st.
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